Swiss Re in talks to buy stake in insurer China Pacific

FILE PHOTO: The logo of the world's second largest reinsurer Swiss Re is seen outside the company's offices in Zurich, Switzerland, February 23, 2018. REUTERS/Moritz Hager/File Photo

ZURICH (Reuters) - Swiss Re SRENH.S is looking at buying a stake in China Pacific Insurance Co. (CPIC) 601601.SS via a primary offering of the Chinese company's securities, the Swiss re-insurer said on Wednesday.

Swiss Re declined to comment on a separate report that China Pacific was planning to take a stake in the Zurich-based company, but said it was not planning to issue shares or make treasury shares available to any potential investor.

China Pacific said in September it was planning to issue global depository receipts on the London Stock Exchange, potentially opening opportunities for international investors.

“No definitive agreement has been entered into between Swiss Re and CPIC. Any securities offering by CPIC remains subject to various contingencies, including CPIC’s decision to proceed with any such offering,” Swiss Re said in a statement.

“Separately, Swiss Re has no current intention of issuing new shares or making treasury shares available to any potential investor,” the Zurich-based company added.

Late last month, Swiss Re shelved a second tranche of share buybacks due to big claims from natural and man-made catastrophes, but said its capital position remained strong enough to pursue growth opportunities.

Reporting by John Miller; Editing by Brenna Hughes Neghaiwi and Mark Potter